Cohocton Wind Watch is a community citizen organization dedicated to preserve the public safety, property values, economic viability, environmental integrity and quality of life in Cohocton, NY and in surrounding townships. Neighbors committed to public service in order to achieve a reasonable vision for a Finger Lakes region worthy of future generations.

Monday, August 07, 2017

Goldman Sachs’s ‘Secret’ SunEdison Loan at Center of KKR Suit

First Wind

In January 2015, Goldman, Morgan Stanley and Deutsche Bank were among five lenders on a margin loan to SunEdison. The $410 million, two-year deal was intended to help fund the $2.4 billion purchase of renewable-energy developer First Wind Holdings, and Goldman was a financial adviser, according to the lawsuits.

While many details about the margin loan were disclosed, a side letter agreement that defined its exact triggers wasn’t, Pyramid said. The TerraForm Power shares pledged to back the loan traded at $32.58 a share when the loan was entered, and had to decline 23 percent before a trigger was exceeded, according to its lawsuit.

The underwriters say enough was disclosed to anticipate when a margin call might be triggered, and that SunEdison didn’t need to give “each and every term” of the loan so investors could know its exact timing or size.

Risks of Industrial Wind Turbines is a group of citizens and organizations dedicated to preserve the public safety, property values, economic viability, environmental integrity and quality of life of residents and future generations.